An illegal foreigner was apprehended in Cape Town with R19 million in counterfeit cash, marking a significant breakthrough for local law enforcement.
A chance encounter with illegal foreigner yields R19 million in counterfeit cash
On Monday, 16 October 2023, Cape Town police made a significant arrest following a routine stop and search operation conducted in Riebeeck Street, Vasco, Goodwood.
A 46-year-old foreign national was apprehended for the illegal possession of counterfeit foreign currencies, primarily in US dollars, and for being undocumented in the country.
In a statement, police spokesperson Lieutenant Colonel Malcolm Pojie revealed the arrest was a result of the collaborative efforts between members attached to the Provincial Economic Infrastructure Task Team and the Provincial Extortion Task Team.
Upon stopping a suspicious vehicle, officers discovered a grey safe concealed within a black bag. A subsequent search led to the uncovering of a blue bag, which contained counterfeit currency equating to a whopping R19 million.
The counterfeit nature of the currency was established after the discovery.
The suspect, whose identity has been withheld pending further investigations, was unable to produce any documentation verifying his legal status within South Africa. Consequently, he was detained at Goodwood SAPS for the illegal possession of counterfeit money and being an undocumented individual.
What happens when counterfeit cash enters the economy?
The entry of counterfeit money into South Africa’s economy, or any economy, can have several adverse effects.
INFLATION
Counterfeit money increases the amount of currency in circulation, which can lead to inflation. Inflation erodes purchasing power and can lead to higher prices for goods and services.
In response to inflation, the central bank might raise interest rates to curb spending, which could in turn affect borrowing costs and investment levels.
REPUTATION
The circulation of counterfeit money can erode public confidence in the monetary system. People may lose trust in the currency if they fear receiving counterfeit notes.
South Africa’s reputation on the international stage may be affected if the country is perceived as having a significant counterfeit money problem. This could affect trade and foreign investment.
FINANCIAL LOSSES
Individuals and businesses suffer financial losses when they unknowingly accept counterfeit money, as it has no real value. They also incur costs related to the detection and reporting of counterfeit currency.